UOB KAYHIAN | UOB KAYHIAN |
Jiutian Chemical Group (JIUC SP) 1Q21: Strong Beat On Higher ASPs And Volume
Jiutian’s 1Q21 marked the second consecutive quarterly record high since its IPO in 2006. The group benefitted from positive operating leverage arising from increased volumes and product ASPs, which was led by an industry supply shortage and higher demand for end-products manufactured in China. We believe feedstock ASPs could remain elevated for 2021, which would lead to the sustained gross profitability and solid free cash flow generation. Maintain BUY with a higher target price of S$0.138.
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SIA Engineering (SIE SP) 2HFY21: Marginal Earnings Beat; Recovery Trajectory Remains Uncertain
Earnings were better than expected, partly due to lower subcontracting costs. However, SIAEC continues to face structural challenges, which have been heightened by the COVID-19 pandemic. SIAEC is meeting some of these challenges by diversifying out of Singapore and exploring new business ventures but the impact is estimated to be gradual. Our fair value approximates long-term mean PE multiple of 18.2x on FY24’s earnings. Maintain SELL. Target price: S$2.00.
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UOB KAYHIAN |
DBS VICKERS |
StarHub (STH SP) 1Q21: Below Expectations; Benefits From Reopening Of Economic Activities
StarHub reported a 24% yoy and 15% qoq decline in 1Q21 net profit of S$30.5m. Stripping out JSS, earnings grew by 17% qoq on the back of stable blended ARPUs and better margins in Pay TV and broadband (as a result of cost optimisation). The earnings were below expectation and we cut our 2021 net profit forecast by 7%. Maintain HOLD with a marginally lower DCF-based target price of S$1.30. Entry price: S$1.15.
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AIMS APAC REIT Buy Unfolding of hidden value
Investment Thesis Attractive valuations on all fronts. We believe the market has largely ignored AAREIT’s attractive valuations compared to its 5-year historical average. Trading at a forward yield of 7.2% underpinned by its healthy portfolio WALE, and P/NAV of 1.01x - both are close to -1SD of their historical mean - the risk-reward ratio for AAREIT is attractive at this level. We raise our TP to S$1.60 given stronger-than-anticipated earnings performance, implying a total return of c.25%. |
Check out our compilation of Target Prices